None Current Attempt in ProgressBlossom Company had the following assets on January 1, 2027.ItemCostPurchase DateUseful Life(in years)Salvage ValueMachinery$68,160Jan. 1, 201710$0Forklift28,800Jan. 1, 202450Truck32,064Jan. 1, 202282,880During 2027, each of the assets was removed from service. The machinery was retired on Jarfor $11,520. The truck was discarded on December 31. The company uses straight-line depreof December 31, 2026.Compute the gain or loss for each of the asset disposals that occurred in 2027. (Hint: Be surefrom January 1, 2027, to disposal date.)ItemMachineryForkliftGain or Loss$SA$Truck$Amount

Gain or Loss on Asset Disposal for Blossom Company (2027)We can calculate the gain or loss for each…

Answered: Current Attempt in Progress Blossom…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 9MCQ: Chapman Inc. purchased a piece of equipment in 2018. Chapman depreciated the equipment on a...

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When depreciation is recorded each period, what account is debited? a. Depreciation Expense b. Cash c. Accumulated Depreciation d. The fixed asset account involved Use the following information for Multiple-Choice Questions 7-4 through 7-6: Cox Inc. acquired a machine for on January 1, 2019. The machine has a salvage value of $20,000 and a 5-year useful life. Cox expects the machine to run for 15,000 machine hours. The machine was actually used for 4,200 hours in 2019 and 3,450 hours in 2020.
Crane Company purchased a depreciable asset for $680000 on April 1, 2018. The estimated salvage value is $68000, and the estimated useful life is 5 years. The straight-line method is used for depreciation. What is the balance in accumulated depreciation on May 1, 2021 when the asset is sold? $335400 $377400 $240900 $282900
Bramble Corp. purchased a depreciable asset for $ 726000 on April 1, 2018. The estimated salvage value is $ 72000, and the estimated useful life is 5 years. The straight-line method is used for depreciation. What is the balance in accumulated depreciation on May 1, 2021 when the asset is sold? $ 266800 $ 403300 $ 308800 $ 361300
Cullumber Company had the following assets on January 1, 2022. Item Cost Purchase Date Useful Life(in years) Salvage Value Machinery $72,000 Jan. 1, 2012 10 $ 0 Forklift 31,000 Jan. 1, 2019 5 0 Truck 37,400 Jan. 1, 2017 8 3,000 During 2022, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June 30 for $12,100. The truck was discarded on December 31.Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on disposed assets. The company uses straight-line depreciation. All depreciation was up to date as of December 31, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit choose a transaction date…
Cullumber Company had the following assets on January 1, 2022. Item Cost Purchase Date Useful Life(in years) Salvage Value Machinery $83,000 Jan. 1, 2012 10 $ 0 Forklift 42,000 Jan. 1, 2019 5 0 Truck 48,400 Jan. 1, 2017 8 3,000 During 2022, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June 30 for $13,200. The truck was discarded on December 31.Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on disposed assets. The company uses straight-line depreciation. All depreciation was up to date as of December 31, 2021. Date Account Titles and Explanation Debit Credit Jan 1 Accumulated Depreciation - Equipment 83000 enter a credit amount Equipment enter a debit amount enter a credit amount June 30 depreciation expense enter a debit amount enter a credit amount enter a debit…
The following data relate to the Machinery account of Wildhorse, Inc. at December 31, 2025. Original cost Year purchased Useful life Salvage value Depreciation method Accum. depr. through 2025* a. Cash A Machinery (Machine A) $54,280 2020 15,340 10 years $3,658 Sum-of-the-years'-digits $36,816 B 15,340 $60,180 2021 Machinery 15,000 hours $3,540 Activity $41,536 C $94,400 2022 15 years $5,900 Straight-line $17,700 D $94,400 *In the year an asset is purchased, Wildhorse, Inc. does not record any depreciation expense on the asset. In the year an asset is retired or traded in, Wildhorse, Inc. takes a full year's depreciation on the asset. The following transactions occurred during 2026. 2024 10 years $5,900 On May 5, Machine A was sold for $15,340 cash. The company's bookkeeper recorded this retirement in the following manner in the cash receipts journal. Double-declining balance $18,880
Part a. Rio Grande Company purchased equipment on January 1, 2017 for $75,000. The estimated useful life of the equipment is 5 years, the salvage value is $10,000, and the company uses the straight-line method to depreciate fixed assets. Requlred: Prepare the Journal entry would Rlo Grande record If the equlpment Is scrapped after flve years? Part b. On January 1, Hampton Company paid $48,000 for a new delivery truck. It was estimated that the truck would be driven 100,000 miles during the next 5 years, at which time it would have a salvage value of $3,000. During the first and second years, the truck was driven 22,000 and 18,000 miles, respectively. Requlred: How much Is accumulated depreclation usIng the unlts of output (mlles driven) method at the end of year 2? Part c. Zack Co. incurred the following costs related to equipment during November 2017. 1. Purchased equipment with a list price of $90,000 for $87,300. 2. Had the equipment installed and paid the installer $2,000. 3. Paid…
Zorzi Corporation purchased a Machine on January 1, 2017 for $80,000. The machinery is estirmated to have a salvage value of $8,000 after a useful life of 8 years. Compute the depreciation expense for 2017 using the sume of the double-decling balance method O $5.000 O $10,000 O $15.000 O $20,000
On January 1, 2014, Waterway Industries purchased equipment at a cost of $404000. The equipment was estimated to have a salvage value of $17000 and it is being depreciated over eight years under the sum-of-the-years'-digits method. What should be the charge for depreciation of this equipment for the year ended December 31, 2021? O $50500 O $48375 O $10750 $11222
Here are selected 2022 transactions of Ayayai Company. Jan. 1 Retired a piece of machinery that was purchased on January 1, 2012. The machine cost $60,000 and had a useful life of 10 years with no salvage value. June 30 Dec. 31 Date Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of where applicable. Ayayai Company uses straight-line depreciation (Assume depreciation is up to date as of December 31, 2021.) (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) Account Titles and Explanation Accumulated Depreciation Equipment Jan 1 Sold a computer that was purchased on January 1, 2019. The computer cost $35,000 and had a useful life of 5 years with no salvage value. The computer was…
Assume that on 31st December 2014 Ali and Sons Company purchased a machine for OMR 20000 and expecting the salvage value after its useful life of 5 years is OMR 2000. Calculate the book value of the machine on 31st December 2018 by following Straight line depreciation method. a. OMR 5600 b. OMR 14000 c. OMR 2000 d. OMR 9200
Skysong Industries presents you with the following information. Complete the table for the year ended December 31, 2027. The company depreciates all assets using the half-year convention. (Round answers to O decimal places, e.g. 45,892.) Description Machine A Machine B Machine C Machine D Date Purchased 2/12/25 8/15/24 7/21/23 Cost $151,050 80,000 232,140 (c) Salvage Value $16,960 22,260 23,500 73,140 Life in Years. 10 5 00 8 5 Depreciation Method SL DDB SYD (a) f D

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